Baazar Style Retail, a Kolkata-based company, is preparing to raise up to ₹835 crore through its upcoming initial public offering (IPO). This development is important in the retail sector.
Renowned for its fashion offerings the company has set a price range of ₹370 to ₹389 per share for the IPO, which is set to open for subscription on August 30. With backing from notable investor Rekha Jhunjhunwala Baazar Style Retail is targeting to raise around ₹835 crore at the end of the price spectrum.
IPO Structure and Key Details
The initial public offering (IPO) comprises a new share issuance worth up to ₹148 crore along with a sale offer (OFS) from group promoters and other shareholders looking to sell approximately 1.7 crore shares valued at ₹687 crores. Notable participants in the OFS include Rekha Jhunjhunwala, Intensive Softshare and Intensive Finance.
The funds raised through the issuance amounting to approximately ₹146 crores will be primarily used to settle existing loans and for purposes. This strategic move is intended to reduce the companys debt burden and strengthen its financial position, setting the stage for future expansion.
Market Position and Growth Prospects
Since its establishment in 2013 Style Baazar has carved out a niche, in the organized value retail sector particularly in Bengal and Odisha where it holds a market share of 3% and 2.2% respectively. The company’s focus on fashion has resonated with consumers leading to expansion, in key markets.
The upcoming IPO aligns with a phase of growth, in the Indian retail landscape driven by rising consumer spending and a shift towards organized retail formats. Style Baazars capacity to capitalize on this trend along with its brand reputation offers an attractive investment prospect.
Shareholder and Financial Insights
The team behind Baazar Style Retail includes professionals, like Pradeep Kumar Agarwal, Rohit Kedia and Shreyans Surana. The company has shown performance with steady revenue growth and positive profit metrics.
Given the scale of the IPO and the companys reputation in the market experts expect significant interest from both institutional and retail investors. The support of Rekha Jhunjhunwala, a well regarded personality in the investment field, adds to the appeal of the IPO.
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Conclusion
In conclusion, Baazar Style Retail’s upcoming IPO presents an investment opportunity. The company is poised to leverage the increasing demand in the Indian retail sector with a management team’s strategic market positioning and support from investors. This makes the IPO an appealing option for those seeking exposure in the value fashion market.
People May Ask
When is the public subscription period for Style Baazar’s IPO?
The IPO of Style Baazar is set to open on August 30, with a price range of ₹370 to ₹389 per share.
What is the target amount Style Baazar plans to raise through its IPO?
The company aims to secure around ₹835 crore at the price point.
How will the funds from the issuance be utilized?
The funds will be utilized to repay certain outstanding loans and for other purposes.
Who are the key shareholders involved in the Offer for Sale (OFS)?
Notable figures in the OFS include Rekha Jhunjhunwala, Intensive Softshare and Intensive Finance.
What is Style Baazar’s market share in Odisha?
Style Baazar holds a 3% share in the organized value retail market in Bengal and a 2.2% share in Odisha.
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